When you think about the problems that anyone involved in running their own business may encounter, you’ll typically find that managing cash flow and sticking to a budget may be fairly high on their list.
Almost everyone these days may have had to tighten their belts a little and landlords are no exception. Here are some tips on how you may perhaps be able to make a few savings:
- when buying your property, you may need to spend a bit of time researching the area and the type of tenants you are likely to attract to that location;
- don’t just head for the local estate agent when trying to find a suitable property – check out local property auctions, as these are often a major source for some real savings;
- vacant properties are costing you money. The better you can fit in with prevailing market conditions then the more likely you may be to find suitable tenants for your property. For example, offering a property as ideal for a young family in an area with no parks or schools nearby may not provide you with the results you expect – no matter how well presented or attractive the property actually is;
- keep you décor neutral – people have widely varying tastes when it comes to décor and it may be better for this to be bland and inoffensive rather than a statement about how many primary colours you can have in the one room. If your tenants want to brighten things up a bit they can do this with their own possessions and their own taste (and own money). More important for letting success is to ensure that your property is clean, freshly decorated and well maintained;
- when setting out to purchase buy to let insurance cover for you property make sure that you compare some let property insurance quotes so that you can select the policy most appropriate for you. You may wish to look out for policies where you may be able to attract a lower premium by agreeing to a higher voluntary excess;
- make sure you know about all of the allowances that you may claim to help reduce your tax bill. These could include tax relief on mortgage interest, allowances, your costs for letting agents and the like and for purchasing replacement furnishing for your letting property, etc. The HRMC website is a useful source of information on this.
Trying to save money by cutting corners and making do may typically not be a sound approach in the long term, particularly where matters of safety are concerned. So, for example, regular checks of electrical appliances, gas boilers and heating systems, are a legal requirement and are not something that you can just decide not to do to save a few pounds here and there.